Step-by-Step Guide to Acquiring Land in Cambodia as a Foreigner (2025 Edition)

Cambodia’s booming real estate market has become a magnet for foreign investors seeking opportunities in Southeast Asia. From beachfront resorts to urban developments, the Kingdom offers high potential returns—but navigating land ownership laws as a foreigner requires careful planning and legal insight.

In this comprehensive guide, we’ll break down the legal pathways to acquiring land in Cambodia, including leasehold agreements, strata titles, and nominee structures. With real-world examples and expert guidance from Adaeng Development Co., Ltd., you’ll be equipped to make informed, compliant investment decisions.

Why Invest in Cambodian Land?

Cambodia’s land market is fueled by:

• Rapid urbanization in cities like Phnom Penh, Sihanoukville, and Siem Reap
• Infrastructure expansion including expressways, airports, and smart city projects
• Investor-friendly policies and low property taxes
• Strategic location within ASEAN and access to China’s Belt and Road Initiative

According to CBRE Cambodia, land prices in key zones have appreciated by over 10% annually in recent years, making it a prime time to enter the market.

Can Foreigners Own Land in Cambodia?

No, foreigners cannot directly own land in Cambodia. The Constitution restricts land ownership to Cambodian citizens or legal entities with at least 51% Cambodian ownership.

However, there are legal alternatives that allow foreigners to control, develop, or profit from land assets. Let’s explore them in detail.

1. Leasehold Agreements (Long-Term Leases)

✅ Legal and Secure

Foreigners can lease land for up to 50 years, renewable once for another 50 years, under the Land Law of 2001.

📌 Use Cases:

• Building a resort or commercial facility
• Agricultural development
• Residential use with construction rights

📄 Key Lease Terms:

• Duration and renewal clauses
• Construction rights and responsibilities
• Dispute resolution mechanisms

🧠 Example:

A Singaporean investor leases 2 hectares in Kampot for 50 years to develop an eco-resort. The lease includes rights to build, sublease, and transfer the leasehold interest.

🛡️ Tip from Adaeng:

Always register the lease with the Cadastral Office to ensure enforceability and protect your rights.

2. Strata Title Ownership (Condominiums)

✅ Direct Ownership Allowed

Foreigners can own up to 70% of the units in a strata-titled building, as long as the units are above the ground floor.

📌 Ideal For:

• Condominiums
• Mixed-use developments
• Serviced apartments

🧠 Example:

A French expat purchases a 2-bedroom condo on the 5th floor of a Phnom Penh development. The unit is registered under their name with a strata title.

📋 Requirements:

• Developer must be licensed
• Building must be registered for strata title
• Ownership must be recorded with the Ministry of Land Management

🛡️ Tip from Adaeng:

Verify the developer’s compliance and title registration before purchase. We can assist with due diligence and legal review.

3. Nominee Structures (⚠️ Risky & Not Recommended)

⚠️ Legally Grey

Some foreigners use a Cambodian citizen as a “nominee” to hold land on their behalf. While common in the past, this method is legally risky and not enforceable in court.

🧠 Example:

A foreign investor signs a private agreement with a Cambodian friend to hold land in their name. If the nominee defaults or disputes arise, the foreigner has no legal recourse.

🚫 Risks:

• No legal ownership
• Vulnerable to fraud or disputes
• Violates the spirit of Cambodian law

🛡️ Tip from Adaeng:

We strongly advise against nominee arrangements. Instead, explore joint ventures or long-term leases with legal safeguards.

4. Cambodian Company with Local Majority

✅ Legal Entity Ownership

Foreigners can form a Cambodian company with at least 51% Cambodian ownership to acquire land.

📌 Use Cases:

• Agricultural or industrial land
• Real estate development
• Long-term investment projects

🧠 Example:

A joint venture between a foreign investor (49%) and a Cambodian partner (51%) forms a company to purchase land for a logistics hub.

🛡️ Tip from Adaeng:

Use a shareholders’ agreement to protect your interests and define profit-sharing, management rights, and exit strategies.

Step-by-Step Land Acquisition Process

1. Define Your Investment Goals Residential, commercial, agricultural, or mixed-use?
2. Choose the Right Legal Structure Leasehold, strata title, or company ownership?
3. Conduct Due Diligence
   • Verify land title
   • Check zoning and land use
   • Confirm seller’s identity and rights
4. Negotiate and Draft Contracts
   • Lease or sale agreement
   • Construction rights
   • Dispute resolution clauses
5. Register the Transaction
   • With the Cadastral Office or Ministry of Land Management
   • Pay applicable taxes and fees
6. Develop or Hold the Property
   • Begin construction or lease to tenants
   • Monitor compliance and renewals

Visual Summary

Here’s a quick comparison of the three main options:

Why Work With Adaeng Development?

At Adaeng Development Co., Ltd., we specialize in helping foreign investors navigate Cambodia’s land market with confidence. Our services include:

• Legal structuring and compliance
• Land sourcing and due diligence
• Lease negotiation and registration
• Joint venture facilitation
• Project development and advisory

We’ve supported clients from Europe, Asia, and North America in securing land for resorts, solar farms, and commercial hubs across Cambodia.

Explore our Work With Us page to learn how we can support your land acquisition journey.

Conclusion

Acquiring land in Cambodia as a foreigner is entirely possible—if you follow the law and choose the right structure. Whether you’re building a resort, launching a business, or investing in property, Adaeng Development is here to guide you every step of the way.

Ready to secure your piece of Cambodia? Contact us today for a personalized consultation.